Conflicted About Buying A Mixed-Use Building? With Commercial Propery Management, Your Concerns Can Be Calmed
If you have the opportunity to buy a mixed-use building as an investment, it's possible that all the negative aspects of the purchase are running through your head. How much responsibility would this require? Will you be able to have a normal life if you're taking care of this building? Yes, you can, especially if you hire a commercial property management company with residential management experience to handle the building.
Among the chief issues that mixed-use buildings have is the range of nuisances possible in the building. From noise complaints from residents about the commercial tenants to pest problems brought about by restaurants and bars, these issues might seem like an immediate dealbreaker. But a property management company can arrange for preventive pest control for the whole building as well as provide emergency pest control if there's an acute problem. They can arrange for soundproofing to be added between commercial and residential space, as well as oversee the installation. Disputes can go to the management company instead of you. Really, the management company can handle all these issues, freeing you up except for the occasional request for permission to upgrade or fix something.
If you're concerned about how to deal with your insurance company given that you'll have mixed uses and businesses in the building, again, the management company can deal with arranging and overseeing insurance paperwork. They may even have a preferred company who they use for other properties. They will also know whether requiring the residents to have their own renter's insurance is a good idea (many will already have it, but some might not), and they can handle insurance claims for the building if there's damage to common areas.
Finding the right mix of tenants can be difficult if you don't live in the building and know how everything works together there. If you have noisy businesses like bars, you need tenants who can stand that noise. If you have quiet residents and need to find a business, you have to be extra careful who you rent to. The management company can handle all this and keep track of which way the building seems to be trending, so they know who will be a suitable tenant.
Contact property management companies that have experience with mixed-use buildings as soon as you can. If that building is a good deal, you should grab it, and leave the tough stuff to a management company, such as Green Efficient.